1. Institut Manajemen Telkom
Cordev 7
Continental Airlines Inc. --- 2007

2. Case Fact
Tahun Penjelasan
1934 Didirikan oleh Walter Valney & Louis Mueller.
Penerbangan Pertama dari El-Paso, Texas ke Pueblo dan Colorado
1937 – 1982 The Headquarters moved from El-Paso to Denver and then to Houston
following a merger with Texas International
1983 Pertama kalinya Continental Bangkrut
1987 Maskapai Terbesar ke-3 di A.S berkonsolidasi dengan Frontier, People
Express dan New York Air
1990 A second Chapter 11 was filed by Continental.
1993 It emerged from bankcruptcy and in July of the next year celebrated its
60th anniversary of service
2001, 2002,
2004, &
2005
Continental memiliki kerugian laba bersih
2006 Kembali memiliki keuntungan sebesar $346 million.
2005 – 2006 4 major competitors – Delta, Northwest, United and U.S Airways

3. Case Fact

4. Go Forward Plan
Fly to
Win
Achive above-average profits in a changed industry environment
Grow the airline to where it can make money and keep improving the
business/leisure mix.
Maximize distribution channels while reducing distribution costs and
eliminating non-value added costs.
Fund the
Future
Manage company assets to maximize stakeholder value and built for the
future
Reduce costs with technology
Generate positive cash flow and improve financial flexibility by increasing
its cash balance.
Make
Reliabilit
y a
Reality
Deliver an industry-leading product the airline isproud to sell
Rank among the top of the industry in the key DOT measurements: on-
time arrivals, baggage handling, complaints, and involuntary denied
boardings
Keep improving the product
Working
Together
Help well-trained employees build careers they enjoy every day. Treat
each other with dignity and respect.
Focus on safety, make employee programs easy to use, and keep
improving communication.
Keep pay and benefits competitive in a changed industry environment

5. Competitor & Market Share
American, 15.4
United, 12.1
Southwest, 11.
9Delta, 11.2
Continental, 7.
7
Northwest, 7
U.S
Airways, 4.7
JetBlue, 4
America
West, 3.8
Alaska, 2.6
Other, 19.6

6. PROBLEM
 What strategy shoul Continental adopt to compete against the low-cost
carriers such as AirTran, JetBlue and Southwest? Can Continental
realistically compete with these airlines on the basic of price?
 How much of a threat are Delta, Northwest, U.S, AirWays and United and
what should be Continental’s strategy to compete against these airlines?
 Will the changes in Continental’s regional jet service affect the overall
service offered by the airline?
 Based on the service quality report by the Airline Quality Rating, what
specific recomendations would you give Continental? In particular, address
the criticisms about involuntary denied boardings (bumping)
 Should Continental change its international strategy in any way? Are there
destinations that it should add or remove?
 How important are fuel costs and is Continental taking appropriate action to
manage these costs now and in the future?
 Evaluate Continental’s current use of the Internet in booking tickets.
 What should Continental’s actions be in light of the EU-US Open Skies
Treaty?

7. Q1
Service Strategies:
1. Perhatikan trend konsumen
2. Ingat value proportionnya
3. Behavior konsumentingkat
penerbangan tinggi, konsumen lebih
melihat pelayanan
Teori Porter:
1. Cost Leadership
2. Differentiation
3. Focus dengan target Lower Upper

8. Q2 (Exhibit 13)
Two categories competitors:
1. Carries operating under bankrupcy
protection: Delta Air Lines and Nortwest
Airlines
2. Carrier that have emerged from
bankrupcy: U.S Airways and United
Arilines
Solusi: Membuat value creation (brand
Faster and better)

9. Q3
Ya, tentu akan mempengaruhi  justru yang
menggapai “pasar yang kecil”
Regional Jet Service ini bisa memberikan
cost advantages yaitu break-even load.
Regional Jet Sevice ini harus
mengutamakan kenyamanan kepada
konsumen karena mengangkut
penumpang dengan jarak yang cukup jauh
sehingga diberikan pelayanan tambahan

10. Q4
Menghadapi kritikan “bumping” dengan
menerapkan bundling, yaitu konsumen
bisa membeli tiket pada penerbangan
selanjutnya dengan harga 50%, tetapi
tidak untuk tiket yang promo

11. Q5
Kelemahan dari The Go Forward Plan
adalah ketidakmampuannya dalam
“melihat” isu-isu potensial yang berskala
internasional salah satunya adalah
Relationship dengan perusahaan-
perusahaan pendukung seperti hotel
ataupun travel-travel di beberapa negara.
Jadi, yang harus ditambahkan adalah
komitmen “Business To Business” dengan
jenis-jenis bisnis yang sejenis.

12. Q6
Fuel Cost sangat penting karena:
- Merupakan kebutuhan utama
- Harga bahan bakar naik sejak tahun 2007
- Ya, perusahaan bisa melakukan strategi
yang sama dilakukan dengan perusahaan
lainnya, yaitu Hedging Strategies to
control fuel costs

13. Q7
Perusahaan sudah menerapkan internet dalam
proses booking, dengan manfaat:
1. Reduced the costs of tickets sales  biaya
administrative
2. Dengan e-ticket bisa menyerahkan pekerjaan
“ticketing” kepada konsumen (bisa diprint di
rumah)
3. Atau tinggal print saja di counter tiket di bandara
4. Lebih cepat
5. Menekan biaya counter tiket
6. Meningkatkan kepuasaan konsumen

14. Q8
Mendukung UE-US Open Skies Treaty
karena ini merupakan peluang untuk dapat
memperluas area
penerbangan, menambah market
size, jalur penerbangan potensial (seluas
antara Amerika hingga Bandara Heatrow
Inggris harus bisa Differentiation
dibandingkan Delta, Continental dan U.S
Airways)

15. Terima Kasih